By Obinna Uballa
The Debt Management Office (DMO) has announced plans to raise N200 billion through two Federal Government bond offerings scheduled for auction on August 25, 2025.
According to a notice issued by the DMO on Friday, the subscription price for each bond is fixed at N1,000 per unit, with a minimum subscription requirement of N50,001,000 and subsequent bids in multiples of N1,000.
The first offer, valued at N100 billion, is a new five-year bond due for maturity in August 2030. The second, also worth N100 billion, is a re-opening of an existing seven-year bond maturing in June 2032, carrying a coupon rate of 17.95 percent payable semi-annually.
The DMO explained that successful bidders in the reopened tranche will pay a price aligned with the yield-to-maturity bid that clears the volume on offer, including any accrued interest on the instrument.
“Interest is payable semi-annually, while redemption will be made in full on the maturity date,” the notice stated. The bonds, it added, are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange.
The DMO emphasised that the instruments qualify as government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), granting tax exemptions for pension funds and other approved investors. They also qualify as liquid assets for banks when calculating liquidity ratios.
The Office further stated that all Federal Government bonds are backed by what it called ” the full faith and credit of the government and are charged upon the general assets of Nigeria.”
The auction comes as the government continues to rely on the domestic debt market to fund its budgetary requirements and manage public debt in line with its Medium-Term Debt Strategy.
